TDSR Singapore: How to Calculate Your Borrowing Power for Property
The Total Debt Servicing Ratio is the most important number in any Singapore property purchase. Get it wrong and you'll spend months shortlisting properties you can't finance. Here's exactly how TDSR
Most buyers focus on the property price. The number that actually determines what you can buy is your TDSR. Total Debt Servicing Ratio.
Get this wrong and you'll spend months shortlisting properties you can't actually finance.
What TDSR Is
TDSR is a MAS-mandated rule that caps total monthly debt obligations at 55% of gross monthly income. All banks are required to apply it. It was introduced in June 2013 and has remained at 55% since July 2022, when MAS tightened it from 60% as part of property cooling measures. (Source: MAS)
"Total debt" includes: the new housing loan you're applying for, plus any existing obligations, car loan, personal loans, credit card minimum payments, student loans, other property loans.
A Real TDSR Calculation
Gross monthly income: S$10,000
TDSR cap (55%): S$5,500/month
Existing debts:
- Car loan: S$900/month
- Credit card (5% of $20,000 limit): S$1,000/month
TDSR headroom remaining for housing: S$5,500 − S$1,900 = S$3,600/month
At a 4% stress-test rate over 25 years, S$3,600/month supports a loan of approximately S$685,000.
With 75% LTV (25% downpayment), that loan amount supports a property of approximately S$913,000.
The MAS Stress Test Rate
Banks don't calculate TDSR at the actual loan rate they're offering you. They use a minimum stress-test rate:
- Private property (bank loan): 4%
- HDB flat (HDB concessionary loan): 3%
This means you're assessed as if the interest rate is 4%, even if the bank's current rate is lower. Always calculate your eligibility at the stress-test rate, not the promotional rate quoted.
What Reduces Your TDSR Headroom
Every existing debt obligation takes a bite out of the 55% ceiling. The most common:
- Car loans (often S$800 to S$1,500/month)
- Personal loans taken before the property purchase
- Credit card facilities (counted at 5% of the approved credit limit per month, not the outstanding balance)
- Other property loans
A car loan of $1,000/month at $10,000 household income reduces your maximum property budget by approximately $190,000 to $220,000. It looks manageable day-to-day but meaningfully compresses what you can buy.
Variable Income: How Banks Count It
If part of your income is variable, commissions, bonuses, rental income - MAS guidelines allow only 70% of the average monthly variable income to count toward TDSR and MSR calculations.
Example: Base salary $5,000 + average monthly commission $3,000. The bank counts $5,000 + (70% × $3,000) = $7,100, not $8,000.
This affects business owners, self-employed individuals, and sales professionals significantly. Know your effective income figure before you apply.
How to Improve Your Borrowing Power
Options are limited but clear:
- Add a co-borrower. A spouse or family member with strong income and no debt is the most effective way to expand borrowing capacity, both incomes are combined, both debts are counted.
- Clear existing debt before applying. Pay down car loans, personal loans, and credit card balances before the property purchase.
- Extend loan tenure. A 30-year loan has a lower monthly repayment than a 25-year loan, which increases TDSR headroom. The ceiling for loan tenure is 30 years for private property (and must not extend past age 65 for the borrower).
- Adjust your property budget. Know what loan you actually qualify for, then work within it.
Our Take
Before you start viewing, calculate your TDSR position. Know your ceiling. Then shortlist properties within that ceiling, not above it.
The alternative, falling in love with a property you can't finance - is a frustrating and expensive experience. A 15-minute calculation upfront prevents months of wasted effort.
Want to know your exact borrowing limit based on your income and current debts?
Frequently Asked Questions
What is the TDSR limit in Singapore in 2025?
The TDSR cap is 55% of gross monthly income. This rate has been in effect since July 2022, when MAS tightened it from 60% as part of property market cooling measures. It applies to all residential property loans.
Does TDSR apply to HDB loans?
Yes. TDSR applies to all property loans, including HDB bank loans. For HDB flats financed via the HDB concessionary loan, the Mortgage Servicing Ratio (MSR) at 30% is the more binding constraint in most cases, but TDSR still applies.
Does my credit card limit affect my TDSR?
Yes. Banks count 5% of your total approved credit card limit as a monthly obligation for TDSR purposes, regardless of your actual outstanding balance. If you have $30,000 in credit limits across all cards, that counts as $1,500/month in your TDSR calculation.
Can I include my spouse's income to increase my borrowing limit?
Yes. For joint applications, the combined gross income of both borrowers is used to calculate TDSR. Both parties' existing debts are also included. A spouse with high income and no debts is the most effective way to expand your total borrowing capacity.
What happens if my loan application is rejected due to TDSR?
A TDSR failure means your total monthly debt obligations (at the 4% stress-test rate) exceed 55% of your gross income. Options: reduce existing debts, add a co-borrower, extend loan tenure, or lower your target property price.
Not Sure What the Right Move Is for You?
Every property situation is different. If you're trying to work out what this means for your specific flat, income, or timeline, a planning session is the clearest way forward.
We'll look at your current numbers, map out your options, and give you an honest view of what each path looks like financially, no obligation, no pressure.
[Book a planning session with Serene & Mei →]
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